An MBA Thanksgiving
A holiday feast for 24 is the home cook's
biggest management problem.
We call in the consultants.
By JACOB HALE RUSSELL
Staff Reporter of THE WALL STREET JOURNAL
Published on Nov. 19, 2005; Page P1
Download
Dr. Sulkowicz's complete Thanksgiving recommendation
As a vice president at Sutter Health, a big California hospital
network, Ellen Meier has to deal with 500 Bay Area doctors
and more than 40,000 employees. But that's not what is keeping
the 53-year-old M.B.A. up at night these days: It's Thanksgiving.
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AN
OPTIMAL THANKSGIVING |
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Read the management consultants' complete Thanksgiving
recommendations: |
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• "Focus
on the essentials" - Bain & Co. |
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• "Troublesome
guests should be avoided
(Plus, the warming tray corollary)" -
PricewaterhouseCoopers |
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• "There
is no shame in outsourcing" -
Katzenbach Partners LLC |
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• "Mom as
client" - Boswell
Group |
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• "Determine
your 'definition of victory'" -
Monitor Group |
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She's still not over the time she accidentally
served still-raw turkey to her 10 guests. "We go completely
dysfunctional," she says. "It's so stressful, and
by the time you sit down to eat, your stomach hurts and you're
not hungry."
This Thursday, home chefs all across America will tackle the
most complicated meal of the year. From selecting the lineup
of side dishes to devising a seating plan that separates your
bickering cousins, pulling together a successful Thanksgiving
dinner requires purchasing decisions, project-leadership skills
and a dash of crisis management. In short, it's a time of year
when the family home is essentially turned into a business.
So we decided to take a page from companies that struggle with
their own problems of just-in-time delivery and resource allocation — and
call in the management consultants. We went to five consulting
firms and asked them to re-engineer our Thanksgiving dinner.
Their assignment: Develop a step-by-step game plan, starting
this weekend and concluding with dinner at 5 p.m. on Thanksgiving
Day, for a meal that would satisfy 24 guests without stressing
out the host. Our ground rules left no part of the ritual off-limits,
not even the cranberry sauce.
When the project reports arrived — some in PowerPoint format,
of course — they were full of consulting-world buzzwords.
They even offered some useful advice. One firm, for instance,
identified a little-noticed Thanksgiving troublemaker: green
beans, a B-list side dish that can clog up the kitchen assembly
line. They cracked that problem using the "innovation fulcrum," a
concept that the consultants say has helped fuel strong profit
margins at Irvine, Calif., fast-food chain In-N-Out Burger. PricewaterhouseCoopers
even came up with a "burner theorem" to optimize the
number of side dishes.
Another firm recommended we borrow management strategies from
Southwest Airlines (specifically, the way it empowers flight
attendants) to squeeze productivity out of family members helping
in the kitchen.
And then there was the advice feared by employees across corporate
America whenever consultants arrive: Downsize. More than one
of our firms told us to hand out pink slips to guests whose performance
at previous holidays failed to meet expectations.
Strategic planning, the key type of advice we sought for Thanksgiving,
is the fastest-growing segment of the consulting business. But
overall growth in the industry has slowed in recent years, largely
because of weakness in information-technology consulting: Total
revenues were an estimated $197.8 billion in 2004, up 1.4% from
the previous year, according to research firm Kennedy Information.
One of the industry's biggest catchphrases right
now is "complexity reduction." For corporations,
that often involves identifying non-core functions and then outsourcing
them to specialists, like the booming call-center industry in
India. That was also the biggest theme in the consultants' recommendations
for Thanksgiving. For instance, several companies advised focusing
on the turkey and outsourcing the mincemeat pie to a guest.
Another buzzword concept: identifying "strategic
intent," or uncovering your real goals. In other words,
figuring out what you want most out of your holiday. For Katzenbach
Partners, a New York firm founded by former McKinsey consultants,which
meant that careful preparation of an heirloom turkey might be
the key to happiness for a family of foodies, while a host with
dysfunctional relatives would be advised to concentrate on "social
network analysis." From the firm's presentation: "If
the value proposition for each of your stakeholders isn't crystal
clear, ask them directly."
Below, a smorgasbord of the consultants' ideas.
Bain & Co.
Bain, one of the largest management consulting firms, began our
case the way it often does, with market research: in this case,
a survey of 280 Bain employees asking for the biggest headaches,
and most crucial components, of Thanksgiving. The central discovery?
The turkey, stuffing and gravy are the dishes guests most want
to have home-cooked — so outsource, or guest-source, the
rest.
Bain assigned our case to Mark Gottfredson, global head of performance
improvement, whose specialty includes complexity reduction. He
compared Thanksgiving dishes to stock-keeping units, or SKUs,
retail-industry lingo for individual products offered. "As
companies innovate over time, more SKUs get on their menu, and
there's very little mechanism for them to come out," he
says. But more SKUs mean more complexity — and more costs.
It's easily solved, Mr. Gottfredson says, by applying the 80-20
rule: focus on the 20% of things that drive 80% of the value.
For Thanksgiving, this comes down to cooking your "core
product line" — turkey, stuffing, gravy. That's what
In-N-Out Burger does: It has only four types of items on its
menu. Consultants call that the "innovation fulcrum" — enough
products to satisfy customers without creating complexity. In-N-Out
has expanded sales an estimated 9.2% in 2003, twice the normal
growth rate for fast-food companies, according to Bain. Mr. Gottfredson
cites the fast-food company in a Harvard Business Review article
he coauthored. In-N-Out says it wasn't contacted for the article
and didn't supply the sales figure.
Eliminating or outsourcing dishes also can increase your Overall
Equipment Efficiency (OEE), which measures how much of your available
equipment is being used. According to Mr. Gottfredson, the truly
industrious home chef might make a matrix of each homemade dish,
its cooking time and when you need it finished, and then use
that to decide in what order you should cook your dishes.
PricewaterhouseCoopers
Managing your guests is central to the plan from PricewaterhouseCoopers,
a large firm that provides tax and auditing services along with
strategic advice. It begins with downsizing: Don't invite family
members known as troublemakers simply out of guilt or obligation.
It may be hard, but it's important to just bite the bullet and
get over it, says Joe Duffy, the U.S. practice leader for performance
improvement. (The firm's PowerPoint submission included an imitation
food pyramid, where "troublesome guests and relations" replace
fat and sugars — the avoid-or-use-sparingly category.)
Mr. Duffy also presented a Guest-Capacity Theorem: Don't exceed
either the number of usable chairs, or the amount of usable table
space — contiguous table space divided by 24 inches,
the optimal amount per person.
Tell your invitees that if they want a dish you don't plan to
cook — say, pickled squash — they should bring it
themselves. And remind them that they have to bring not just
the deliverable, as business language would call the pickled
squash, but the necessary "capacity" for you to keep
and serve it. "If the deliverable is Aunt Millie bringing
lemon pie," Mr. Duffy says, "does she clearly understand
it needs to come, and that if it needs refrigeration, bring a
cooler with ice?"
Still, PricewaterhouseCoopers emphasizes that, like any company
with multiple divisions or locations, you need a risk-management
strategy in case your supplier, Aunt Millie, falls through.
The Boswell Group
Kerry Sulkowicz was a practicing psychiatrist before he founded
the Boswell Group, which applies psychoanalysis to businesses
and their leaders, often family businesses. At Thanksgiving, "mom," as
he calls the chef, needs to take a cue from the stereotypical "dad":
Be a bit more controlling. (In contrast, he says, he often advises
CEOs to be more maternal, nurturing and self-revealing.) "When
you have a clear task at hand — in this case it's getting
the meal on the table — creativity is really counterproductive," he
says. So mom needs to take more of a military approach.
Still, mom shouldn't let her authority turn into narcissism — which
for Thanksgiving might mean substituting a non-traditional main
dish for turkey. That decision is similar to a common mistake
made by new CEOs when they make changes simply for the sake of
change, says Mr. Sulkowicz: "Mom ought to ask herself, 'Am
I making the duck because I really believe everyone's going to
be happier with duck, or am I doing this because I want to come
across as different?' "
Mr. Sulkowicz compares Thanksgiving to a family business, and
notes that an estimated three-quarter of family businesses fail
at the transition from the first generation to the second. So
if your relatives don't get along, he advises, don't force them
to try merely out of guilt or obligation — and don't
substitute endless fussing over logistics as a defense mechanism.
Invite friends instead of family, or at least have some friends
attend to buffer tension. Mr. Sulkowicz says he often tells family
businesses to bring in outside managers.
Katzenbach Partners
Even the best-intentioned leader can cause problems by not delegating.
That's one of the organizational principles of the Katzenbach
Thanksgiving. The firm suggests assigning your child to handle
what restaurants call the "staff meal," in this case
dinners that will keep your family well-fed during the week of
preparation. The goal: to eliminate "human resource bottlenecks," which
are limitations caused not by tasks but by people — in
this case, you. Also watch out for "operational bottlenecks," key
points in manufacturing that disproportionately slow down delivery.
A Thanksgiving analogue might be failing to begin defrosting
a frozen turkey until Thursday morning.
Because your labor force is unpaid, you'll have to motivate them — "pride-building," in
Katzenbach's lingo. Give your helpers a chance to exercise their
judgment and truly run their own tasks, says Niko Canner, co-founder
and managing partner. That's a contrast, for instance, to the
overly scripted and inflexible routines typical of call centers.
Pride-building is an approach familiar to Southwest Airlines,
says Mr. Canner, which gives its crews "a great deal of
latitude to create a quirky, fun experience for customers."
The Monitor Group
Michael Kunst, global accounts manager at the Monitor Group,
which is known for consulting on issues like competitiveness
and designing distinctive brands, advises doing some market research
before setting your Thanksgiving menu. The chef, Mr. Kunst says,
should "segment" his or her market to see what different
groups of guests want. Rather than trying to find lowest common
denominators, create products — in this case dishes or
activities — that please each of your audience groups.
Mr. Kunst breaks the Thanksgiving market into four segments:
kids, men, women and older people, more-objective labels than "needs-based" ones
like "lonely, depressed people." The problem with needs-based
labels is that there's no good way, he points out, to identify
and therefore market to all "lonely, depressed people."
Once you've defined your groups, answer some basic questions
about what each segment wants, like a favorite dish or holiday
activity. Ensuring that there's something for every segment might
mean having two small turkeys, one roasted and one deep-fried.
Finally, Mr. Kunst, a foodie who thinks cooking might be a good
second career, has a tip that's served him well at Thanksgiving:
Buy turkey wings and thighs and cook your gravy on Wednesday
night. Gravy is critical to the meal, but it's time-consuming
and distracting to worry about at the last minute. "Like
with Coke's secret ingredient and much like in any professional
restaurant, recipe and sauce production needs to be in your,
the CEO's, hands," he says. "Don't take this lightly:
A so-so gravy versus a blow-away gravy can make all the difference
in your product perception."
Copyright©2005 Dow Jones & Company Inc. All Rights Reserved.
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